BNSF Warns of Higher Rates and Service Cuts if Union Pacific Acquires Norfolk Southern
BNSF Railway has publicly opposed Union Pacific's proposed acquisition of Norfolk Southern, warning of reduced competition, higher rates, and service cuts. The railroad giant has urged customers and the Surface Transportation Board to consider these potential impacts before approving the $85 billion deal.
BNSF's spokesperson, whose name was not disclosed, addressed customers on Monday, expressing concerns about the merger's effects on shippers. BNSF argues that customers will ultimately bear the cost of the acquisition through increased rates on captive traffic. Union Pacific, however, maintains that the merger will enhance competition, boost the economy, and support American manufacturing.
The debate has sparked a divide among shippers. More than 100 support the UP-NS merger, citing potential benefits, while hundreds oppose it, echoing BNSF's warnings. Despite this, neither Union Pacific nor Norfolk Southern has yet detailed their post-merger operating plan. BNSF predicts dire consequences, including an 'operational meltdown' in the U.S. rail industry and the closure of 300 intermodal lanes. Union Pacific has dismissed BNSF's claims about intermodal lane closures as 'unfounded and absolutely false'.
BNSF encourages its customers and other concerned parties to voice their opinions to the Surface Transportation Board. Instead of a merger, BNSF suggests interline collaboration as a competitive response to the UP-NS deal. The future of the U.S. rail industry hangs in the balance as the debate continues and the Surface Transportation Board considers the merger's potential impacts.
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